"Horizon Lines is cooperating fully with the government officials," the company said in the statement.

Horizon operates a fleet of 21 U.S. flag container ships and five port terminals linking the continental U.S. with Alaska, Hawaii, Guam, Micronesia and Puerto Rico.

US Airways pilots dump union

PHOENIX » Three years after their companies joined forces, pilots from America West Airlines and the former Virginia-based US Airways remain locked in a bitter seniority dispute that's become a cautionary tale as other carriers ponder a new wave of consolidation.

The internal fight at Tempe, Ariz.-based US Airways Group Inc. reached a climax yesterday when pilots ousted their union of 59 years and replaced it with another group. The new union, the US Airline Pilots Association, is dominated by pilots from the former US Airways. It will try to throw out an arbitrated seniority ruling that isn't favorable to them.

"It's going to be extremely difficult for me personally and professionally to watch what happens to this pilot group now," said Capt. Jack Stephan, chairman of the ousted Air Line Pilots Association for US Airways.

30-year mortgage rates flat

WASHINGTON » Rates on 30-year mortgages were unchanged this week but other rates showed declines.

Freddie Mac, the mortgage company, reported yesterday that 30-year fixed-rate mortgages averaged 5.88 percent this week, where they have been for the past three weeks. A year ago, 30-year rates stood at 6.17 percent.

But other rates showed declines, which analysts attributed to rising hopes that the Federal Reserve, responding to weak economic data, will move at the end of this month to cut interest rates again.

Rates on 15-year, fixed-rate mortgages dipped to 5.40 percent, down from 5.42 percent last week.

Capital One's profit drops

CHARLOTTE, N.C. » Capital One Financial Corp.'s first-quarter profit fell 19 percent, weighed down by pressures on the company's U.S. businesses, the credit card company said yesterday.

Capital One said the outlook for credit performance weakened due to the slowing U.S. economy, but that its business is generating strong capital.

The McLean, Va.-based company said its first-quarter profit totaled $548.5 million, or $1.47 per share, in the January-March period, down from $675 million, or $1.62 per share, in the same period a year earlier. Quarterly revenue climbed to $3.87 billion from $3.38 billion a year earlier.

BRIEF CASE

CHIPS ARE DOWN: Advanced Micro Devices Inc.'s first-quarter loss matched Wall Street's lowered expectations, with the slumping chip maker hurt by its inability to unload older products and economic turbulence that tamped down consumer spending. It said yesterday that it lost $358 million, or 59 cents per share, during the first three months of the year, its sixth quarterly loss in a row. Sales of $1.51 billion were 22 percent higher than last year and in line with analysts' expectations.